Policy Holder

ARTICLES ABOUT POLICY HOLDER BY DATE - PAGE 3

Definition: Insurance policy lapses when the insured defaults on the payments of renewal premium beyond a grace period. Insurance companies provide an option of reactivating the lapsed policy , within a specific period of time post the grace period. This period offered by the insurer to revive the policy and avail benefits pertaining to it is termed as revival period. Description: During the revival period, the policy is reinstated on the basis of certain conditions.

Definition: Renewal premiums are the subsequent premiums that are paid by the insured to the insurer in order to keep the policy in operation and avail the benefits of the policy accordingly. Description: If a policy holder fails to pay the premiums, then his policy lapses after a grace period. The renewal premiums are paid after the initial premium and are indispensable for the continuation of the policy.

NEW DELHI: Competition Commission has dismissed allegations of abuse of dominance by four insurance companies, including The New India Assurance Co , and sectoral regulator IRDA. The complaint of alleged anti-competitive practices was also filed against National Insurance Co, United India Insurance Co and Oriental Insurance Co. In an order dated May 31, Competition Commission of India (CCI) said "no prima facie case was made out against the opposite parties under...the (Competition)

Definition: Guaranteed interest plans are insurance plans which assure the insurer a guaranteed rate of interest for a specific or fixed period of the policy. Description: Stating alternately, the policies with a provision for fixed rates of interest to the policy holder are called guaranteed interest plans. Also See: Insurance, Guaranteed Survival Benefit , Guaranteed Surrender Value , Insurability

Definition: The policy for which all benefits to the policy holder cease and is terminated due to non payment of premium amount on the due date or even after the grace period is called a lapsed policy. Description: Excessive delay in payments and servicing of the policy leads to the policy being dead or lapsed. However, a lapsed policy may be revived by fulfilling the terms and conditions as per the policy statement. To avoid losses to all parties, generally the revival and reinstatement is encouraged and facilitated.

Definition: Premium paying term is the total number of years for the policy holder to pay the premium. Definition: Policy term is normally equal to the premium paying term. However, some insurance policies give the insured the autonomy to choose a premium paying term lower than the policy term. For instance, insurers allow the insured to get the insurance benefits even if they stop the premium payments after a stipulated period of time by converting the normal insurance policy into a paid up policy . Here the sum assured will be calculated by using the formula.

Definition: The guaranteed surrender value is the amount guaranteed to the policy holder in case of voluntary termination of the policy by the policy holder before maturity. Description: Surrender of the policy before maturity attracts penalty in the form of surrender charges. The final surrender value is calculated after adjusting the surrender charges. Also See : Guaranteed Survival Benefit , Insurability

Definition: Insurable interest exists when the policy holder derives benefit out of the existence of a property or a person and its damage or disability would cause the policy holder to suffer monetary or emotional loss. Description: For instance, people are allowed to insure only their houses, cars or other assets and not those belonging to their neighbours. In case of a property, the coverage extends only to the value of the property and therefore, the insured can not recover more than what the property was worth.

Definition: First time default on premium payments by a policy holder is termed as First Unpaid Premium . Description: With each premium payment a receipt is issued which indicates the next due date of premium payment. If the premium is not paid, this date becomes the date of first unpaid premium. Also See: New Business Premium , Return , Annuity , Insurable Interest , Insurability

KOLKATA: The insurance regulator, Irda, wants risk cover providers to offer maturity benefits on every micro-insurance plan to make it attractive. It may allow business correspondents of banks to sell policies in the country's rural belt to push the product. Insurance Regulatory and Development Authority is revising the micro-insurance guidelines to include this proposal and boost sales. Micro-insurance, which is being sold to the economically weaker section, has seen a steady decline since 2010.